CVC Capital to acquire majority stake in GIC-backed ExamWorks

Sign at CapitaLand’s Capital Tower in Singapore CBDSign at CapitaLand’s Capital Tower in Singapore CBD

CVC Capital Partners said Tuesday it entered a deal to acquire a majority of ExamWorks, although current owners Leonard Green & Partners and Singapore sovereign wealth fund GIC will keep significant stakes, as will the senior management team.

The senior management team keeping stakes in ExamWorks included co-founders Richard Perlman and Jim Price and co-CEOs Wes Campbell and Miguel Fernandez de Castro, the companies said in a press release.

“We are excited about the opportunity to tap into CVC’s investment resources and deep expertise in the healthcare space as we enter into the next chapter of our growth,” Campbell and Fernandez de Castro said in the statement.

Choo Yong Cheen, chief investment officer for private equity at GIC, added that the fund was pleased to continue its long-term partnership with ExamWorks.

“Since our investment in 2016, the company has continued to grow and broaden its offerings to its customer base. We look forward to working closely with CVC and Leonard Green to support management in driving the company’s next leg of growth,” Choo said in the statement.

ExamWorks had listed on U.S. markets in 2010, but was taken private in 2016 by private equity firm Leonard Green & Partners in a US$2.2 billion deal, according to a Wall Street Journal article at the time.

The company provides independent medical examinations, peer reviews, bill reviews, Medicare compliance and other document management-related services. Its customer base includes property and casualty insurers, law firms, third-party claim administrators and government agencies in the U.S., U.K., Australia and Canada.

The deal is expected to close in 2021.

CVC is a private equity firm with around US$115 billion in assets under management. U.S.-based private equity firm Leonard Green & Partners has more than US$50 billion in assets under management.

GIC, which manages the Singapore government’s reserves, has around US$453.2 billion in assets, according to data from the Sovereign Wealth Fund Institute (SWFI).